In this video maniactive teaches how to embed a YouTube video in PowerPoint 2007. You must have a live internet connection to do this. Make sure your Developer tag is turned on in your ribbon. Click on the PowerPoint logo on top left , click PowerPoint options. Under popular click show Developer tab in the ribbon. Click OK. Now in the Developer tab you'll see a toolbox in the toolbar. Scroll all the way down to where it says shockwave/flash object. Draw where you want the video in your PowerPoint presentation. Now in YouTube, copy the URL and go back to the PowerPoint presentation. Right click on it, click properties, and paste the URL into the Movie section. Wherever you see "watch?" delete it. Replace the "=" sign with a "/". True means the movie will automatically play when your presentation starts. Move it to false so you can control it yourself. To test it press F5 to play your PowerPoint presentation.
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